Millions of Gen-Xers have almost nothing saved for retirement, researchers say

Summary

A new report from the National Institute on Retirement Security (NIRS) shows that millions of Americans born between 1965 and 1980, known as Generation X, are heading into retirement without enough saved. The typical Gen-X household has only $40,000 in savings, and 40% of Gen-Xers have no savings at all. Low-income Gen-Xers have managed to save an average of only $4,300 or less. Gen-Xers face challenges such as limited access to pension or 401(k) plans, higher student loan debts, and flat wages. NIRS recommends increasing access to retirement plans and offering tax credits for caregiver work to help Gen-Xers save. A similar study from Natixis Investment Managers found that the median retirement savings for Baby Boomers is $120,000.

Q&As

AI Comments

👍 It's encouraging to see that states are helping residents save for retirement and that Congress is considering a tax credit for doing caregiver work. These are both great steps towards helping Gen-Xers prepare for retirement.

👎 This report is extremely concerning as it shows that millions of Gen-Xers are headed towards retirement without any savings. This is a troubling reminder of the financial pressures and hardships that many are facing.

AI Discussion

Me: It talks about how millions of Gen-Xers are headed toward retirement without any savings. They found that the typical Gen-X household with a private retirement plan has only $40,000 saved, and low-income Gen-Xers have managed to save no more than about $4,300. It also notes that many Gen-Xers don't have access to a pension or 401(k) plan through their job, and they have higher student loan debts than Baby Boomers.

Friend: Wow, that's really concerning. It sounds like Gen-Xers are going to be in a tough spot when they retire.

Me: Yeah, it's a really alarming situation. And the article suggests that Congress should consider giving Americans a tax credit for doing caregiver work, to help them save and prepare for retirement. It also mentions that some states have programs for residents who don't have access to an employer plan, so that might be an option for Gen-Xers.

Action items

• Start saving for retirement as soon as possible. Even if you can only save a small amount each month, it will add up over time.
• Consider investing in a retirement plan through your employer, if available.
• Research state-sponsored retirement plans and tax credits for caregivers to see if you qualify for additional savings opportunities.

Technical terms

Gen-Xers

A term used to refer to people born between 1965 and 1980.

Retirement

The period of time when a person stops working and begins to enjoy the rest of their life.

Private Retirement Plan

A retirement plan that is funded by an individual or a company, rather than by the government.

National Institute on Retirement Security (NIRS)

A nonprofit organization that focuses on research and policy analysis related to retirement security.

$1 million

A large sum of money that is often used as a benchmark for retirement savings.

Pension

A retirement plan that is funded by an employer and provides a fixed income to the employee after they retire.

401(k)

A type of retirement savings plan that allows employees to contribute a portion of their salary to a tax-deferred account.

Tax Credit

A reduction in the amount of taxes owed by an individual or business.

Caregiver

A person who provides care and support to another person, usually a family member.

Social Security

A government program that provides benefits to retired and disabled individuals.

Estate Plan

A plan for managing a person's assets and property after they die.

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